Play Oil Boom Through Ensco Stock

In this new era of permanently high oil, stick with the best drilling plays like Ensco, says Mad Money's Cramer, and avoid the losers like Transocean.

If the technicals are any indicator, Cramer said Tuesday the greater oil service space could rise by as much as 40 percent in the next six months. As the price of oil continues to climb, he thinks oil drillers could see business boom.

To play it, one could buy the OIH , an oil service exchange-traded fund. Instead of buying the OIH, Cramer recommends picking up the best stocks in the ETF, especially the offshore drillers. Transocean is the biggest offshore driller and its stock sports a 7.4 percent dividend yield. Cramer thinks the stock should be avoided, though. He prefers Ensco , the second largest deepwater driller.

“Why buy Transocean trading at 12.3 times next year’s earnings when you could get the superior Ensco for just 8.5 times earnings with a 2.9% yield that's much safer than Transocean's dangerous dividend.”